Data concerning a recent period's activity in the Assembly Department, the first processing department in a company that uses process costing, appear below:
|
Materials |
Conversion |
| Cost of work in process inventory at the beginning of the period |
$ |
2,300 |
$ |
570 |
| Equivalent units of production in the ending work in process inventory |
|
360 |
|
250 |
Equivalent units of production required to complete the beginning work
in process inventory |
|
540 |
|
1,250 |
| Cost per equivalent unit for the period |
$ |
2.00 |
$ |
.50 |
|
|
A total of 26,900 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,800 units and'ending work in process inventory consisted of 2,300 units.
|
Using the FIFO method, compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory.
|
|
|
Materials |
Conversion |
Total |
| Cost of the units transferred to the next department |
|
|
|
| Cost of ending work in process inventory |
|
|
|
|
Please explain how you arrive at your answers. I am trying to learn this new method. I don't just want answers alone. :)